BOT: Thai exports in 2015 will be affected by GSP cut but not to a great extent

BOT: Thai exports in 2015 will be affected by GSP cut but not to a great extent

BANGKOK, 22 January 2015 (NNT) – The Bank of Thailand (BOT) estimates that Thai exports in 2015 will see a growth of 1.0% following the GSP cut by the European Union which has been effective since January 1.

BOT Spokesman Chirathep Seniwong Na Ayutthaya said that Thailand should begin to feel the pinch right in the first quarter of 2015. However, he was optimistic that the impacts would be at an acceptable level as Thai exports that used to benefit from the GSP in the EU market account only for 4 per cent of the country’s total exports. Besides, the EU still needs such imports as auto-parts, cars, and electrical equipment from Thailand.

According to him, Thai exporters would only have to pay 2-6 per cent more in terms of taxes, without the GSP. Only canned pineapples and processed seafood products need to pay much higher tax after the GSP is lifted.

The spokesman revealed that the GSP lifting would likely cause Thailand to lose a competitive edge to other trade rivals like Vietnam and Indonesia while Malaysia and Brazil which face similar cut like Thailand could offset their loss of revenue through FTA promotion with the EU. Meanwhile, an FTA agreement between Thailand and the EU has not been signed yet, the BOT spokesman said.


-- NNT 2015-01-22